These days it is very risky to deal with money management if you don’t know what you are doing. There are so many ways you can lose your capital in just a few seconds that it is no longer safe to do things on your own. If you don’t have any professional education about finances or how to manage your money properly, then you shouldn’t do make any financial decisions on your own. One of the decisions that you make can ruin your whole life.

If you don’t want to be one of those people who throw their money away because they were confident about themselves, then you need to hire a financial advisor. There are a lot of people who think that they don’t need any financial advice but after some time they will realize the mistake they have made. Unfortunately, when they realize the mistake, it will be too late to save the situation. If you are still not convinced that you need a financial advisor, then take a look at some of the benefits that you will have from hiring one.

Avoiding Mistakes

The most obvious benefit of hiring a financial advisor that you will get is that you will be able to avoid making rookie mistakes. Just because they are called rookie mistakes, it does mean they are to be underestimated. In fact, some of the rookie mistakes are the most serious ones and you definitely don’t want to deal with them in your life. So, hiring a financial advisor will give you the chance to avoid this rookie mistake because he will guide you through all of the most important aspects of money management and investment.

When dealing with a lot of money, the last thing that you want to do is make a mistake. Once you make a mistake, depending on the situation, you can either get away with it or you can suffer really bad for the rest of your life just because of a bad decision. Nobody wants to suffer from one mistake for the rest of their lives, so the best and smartest decision that you can do is to hire a professional financial advisor.

Saving Money

As mentioned above the financial mistakes can change your life completely and you can go from having a fortune to being poor in just a few seconds. One bad decision and everything you have ever earned or owned will be lost. The financial advisor will help you avoid making those bad decisions, but also, he will help you save up some money. Some of the mistakes that you would normally do would require a lot of money just to be fixed, if you don’t make those mistakes, then you can save money by fixing them.

With money management, you just have to make smart decisions, and the first smart decision that you can make is to hire a financial advisor. After this decision, your entire life will be much easier because every serious financial decision will be first reviewed by your financial advisor.

Gerald Hörhan is widely known and recognized after his quite rough. But also passionate and furious arguing about underlying issues of the current economic system, its settings, and repercussions. Particularly onto the middle class and average working men. His lecturing proving the mechanism and financial interaction pushing middle class towards consumer debt crisis shook the people worldwide, including governments, banks, and global leaders significantly. There are whole deeply analyzed theories about reasons behind middle class losing this global financial game, but here are just some of the main issues he holds as responsible.

Higher costs and gap between wage and costs

If you took a look at a timeline several decades ago, you’d see that the average wages of middle-class workers have grown significantly if the nominal basis is considered. However, if you adjust the nominal basis according to the inflation, you’ll figure that average wages have grown minimally. Somewhat less than 10%. At the same time, two major expenses including costs for medical insurance and costs for college have grown impressively and outgrown average wages a big time. This stagnant wage growth and a gap between wages and essential costs are one of the major sources of middle class’ debts. Along with the accusation that middle-class people lack saving money habits and financial discipline. There goes the argument about levels of debt that are too high. This issue refers to people getting irresponsible and free with their credits.

Debt-driven hole tends to expand if you hit significant debt and it might swallow a big share of your savings or even monthly paycheck. Furthermore, comes the issue of low lending rates. Although interest-rate policy promoted by the government almost a decade ago has brought some welcomed changes. Such as low mortgage rates, the final effect onto working middle class has been negative. Closely attached to the abovementioned is the issue with the inadequate and unequal growth of the incomes. There’s a significant gap between upper and middle class, creating an issue for the second one.

Lower income – weaker connection to the upper class

With lower overall income you lack money to afford some stuff to link you with the upper class. Thus the system works against any climbing on the social and financial ladders of middle-class workers. It particularly refers to debts emerging from medical and healthcare. As well as from university taxes and all other life aspects providing you with the potential of becoming upper class.

Every time you decide to invest in the market, you accept all the risks of losing money caused by various economical and financial fluctuations at the global markets. This goes for all the assets out there you may invest into, but gold is the safest card to play with. Investing into golden bars or coins is the best insurance and the safest way to protect your money from rough economic turbulence. We’ve created this rundown of some of the basic aspects of investing into gold you should be aware of before making any strategic move at the market to make sure you get the most out of your invested money.

Buying gold

The main reason to buy gold is to ensure your money. Namely, all the other assets are under the strong influence of global economy fluctuations and turbulence. Thus the risk of losing money is significantly higher. Gold bullion is insurance for your investment. Nowadays, you have three options: buying physical gold, buying ETF (electronic gold) and buying paper gold. Physical gold remains the safest option. Two more aspects you should pay attention to is when and where to purchase your golden bars.

Since you’re getting into quite valuable and costly action, do meticulous research of gold dealers before you choose the final one. If you opt for trusted and qualified dealer, he may provide you with powerful analytic tools to help you predict market trends and choose the best time for purchasing gold. You are aiming at the period of gold prices rising. Another decision you have to make is the choice between purchasing gold bars or gold coins. There’s no clear answer or advise here because several aspects determine the better choice.

This includes the total amount of your investment, the options for storing of gold you have, product premiums, your long-term plan for holding and realizing the value of investment, taxes and much more. Finally, once you buy the gold, choose between four main options for storing it: allocated storage, home or bank safe or some completely private location you choose.

These are just some of the major aspects to consider when deciding to invest into gold, but considering the importance of this financial move and its potential to influence your future finances, consulting financial experts is highly recommended.

The number of investors trying to generate profit by investing into mutual funds is constantly increasing whether it goes through 401(k) plans or via any other option available out there. However, investing in mutual funds differs significantly in some aspects compared to common investing at the market which causes confusion and potential financial issues to uninformed clients and brings them to financial advisors to get their answers and explanations. To simplify this matter, here’s a brief overview of step you need to take to profit with mutual funds.

Mutual fund definition

The simplest definition of the mutual fund would say that it is a company focused on raising and owning investments and investing the total money into various markets, including stocks, real estate, gold, and others. The mere procedure of investing is conducted by portfolio manager according to the mutual fund prospectus and the financial strategies exposed in it. The type of fund you’ve invested your money into determines the aspects conditioning your profit generating. If you’ve invested in a stock fund, an increase of stock prices will make money for you. If the mutual fund you have invested into is further investing into real estates, your profiting will depend on fluctuations in real estate prices and estimation, money from renting and several more factors. These aspects influencing your money earning differ from fund to fund, but some general rules and instructions go for all mutual funds.

Investment

One of the main advice is to invest only in a mutual fund you understand and trust. Keep in mind that investing in mutual funds isn’t designed for quick profiting, so think regarding five, ten or more years when predicting overall trends of your finances. Summarize all the expenses your fund requires and be clear you are truly getting benefits on the cost-benefit ratio.